Inflation in the German state of North Rhine-Westphalia rose to 5.9% on the year in August, up from 5.8% in July, indicating German inflation may unexpectedly rise.

Consumer Prices posted a monthly increase of 0.5%, according to the state statistics office in Dusseldorf, compared to a predicted national rise of 0.3%. A Bloomberg survey of 22 economists saw national inflation falling to 6% on the year from 6.2% in July.

North Rhine-Westphalia is the first German state to report August inflation readings and can often be a signal of the trend in the overall figure, which the German statistics office will release later today.

August price rises were driven by monthly increases for clothing and shoes, household energy and alcoholic beverages and tobacco, offset somewhat by lower prices for food and non-alcoholic beverages and for health and beauty products.

NOTE: Figures are not seasonally adjusted.

SOURCE: Landesamt fuer Datenverarbeitung und Statistik Nordrhein-Westfalen